News Eur/usd The Resilience

Sunrise Market Commentary - Fixed Income: new contract highs - London-traders returned and the market seemed to react with a lag to this weekend's election results. In a risk off session, both the German Bund Future and the US Note Future set new contract highs, respectively at 142.62 and 133-04. - Currencies EUR/USD testing key support - On Tuesday, sentiment on the euro remained fragile even as there was little news from the political scene in France or Greece. EUR/USD is again testing the key 1.2974/55 support area. A break below this level would be highly significant from a technical point of view. The Sunrise Headlines - US Equities dropped sharply lower yesterday, but reversed most of their losses in the final hours of trading. The S&P ended the session 0.43% lower. ...

Sunrise Market Commentary - Fixed Income: Little support from elections - Global core bonds set new contract highs at the start of the European session after the French and Greek elections. However, the negative sentiment surprisingly didn't push through and many markets bounced off key levels. - Currencies: euro limits the damage after French and Greek elections. - On Monday, the euro opened sharply lower after the election results in Greece and Spain. However, the price moves developed in an orderly way. Even more, the single currency showed remarkable resilience and reversed part of the early losses. The test of the 1.2974 support was rejected. The EUR/GBP 0.8068 support remains under pressure. The Sunrise Headlines - US Equities hovered sideways on Monday, halting a ...

Dukascopy Fundamental Analysis EUR France has elected new president, Francois Hollande who polled about 52% of the votes. Mr Hollande said that he is proud to return hope to people again. He also announced that he would attempt to rework deal regarding sovereign debt in the Euro Zone countries to promote economic expansion. USD The smalest payroll increase in last 6 months has not influenced the investors who still do not forecast another wave of recession in the US. Better housing and employment data has encouraged experts to believe that from the fundamental perspective the world's largest economy is on the path to recovery. GBP May 7 was a bank holiday in Great Britain. CHF The official SNB exchange rate for EUR/CHF is 1.2013 today; yield on 10-year Swiss Confederation bonds ...

Sunrise Market Commentary - Fixed Income: the only way was up - Political tensions in the Netherlands and France in combination with weak PMI data set the tone for a risk off environment in which especially German bonds profited. The Bund set a new contract high and the German 10-yr yield set a minor record low (1.63%). The Dutch spread added 18 bps (78 bps) and is well underway to a the all time high (86 bps). - Currencies: EUR/USD showed only limited losses even as risky assets were sold - On Monday, EUR/USD ceded ground as negative political and economic headlines from Europe weighed on global market sentiment. However, investors were also cautious on the dollar ahead of tomorrow's Fed decision. Sterling was again an outperformer as EUR/GBP reached a new correction low. ...

Fundamental Analysis EUR Greece's parliament ratified the law allowing debt swap deal with private bondholders that is the main requirement for receiving bailout package from the EU and IMF. Private creditors will have to write down 53.5% for the bonds thus reducing Greek debt by 107 billion Euros. After approving debt swap deal the parliament will embark on designing the austerity measures further to get the second loan from the EU and IMF. USD EIA reported that average four-week demand for the refined products in the US tumbled to the 15-year low. The demand for such products as distillates and gasoline declined to 18.05 million barrels per day, indicating a 6.7% annual fall. Gasoline demand decreased by 6.1% while consumption of distillates fell by 5.9% on a yearly basis. At the ...

Morning Briefing : Euro remains resilient ahead of next week's LTRO What's new: Asia: Asian equities follow their US counterparts into positive territory Australia: Fitch downgrades three banks FOREX: EUR/USD and EUR/GBP at 2 ½ month highs Forex rates in Asia and Indices: EURUSD: 1.3384 – 1.3357. USDCHF: 0.9027 – 0.9008. GBPUSD: 1.5754 - 1.5721. EURJPY: 107.86 – 106.84. USDJPY: 80.65– 79.92. DowJones: 12’984.69 +0.36% NASDAQ: 2'956.98 +0.81% S & P 500: 1'363.46 +0.43% Nikkei: 9’647.38 +0.54% Shanghai: 2'439.63 +1.25% Gold: $ 1'777.70 Crude Oil: $ 108.47 Comments: The Aussie suffered some losses earlier on today’s session on news that credit rating agency Fitch downgraded three Australian Banks yet was able to recover later. The AUD/USD slipped to day’s low so far at 1.0708 from ...

Fundamental Analysis EUR "Spain is showing the market there’s ample demand for their paper" - Padhraic Garvey, head of developed markets debt strategy at ING Bank NV France and Spain, both downgraded by Standard & Poor’s last week, paid lower borrowing costs on Thursday, compared to their previous auctions, a sign the ECB’s refinancing operation alleviated market concern over the Europe’s debt crisis. USD "You’ve got a gradual improvement in the labor market" - Brian Jones, a senior U.S. economist at Societe Generale The number of Americans claiming for unemployment benefits dropped by 50,000 to 352,000 in the week ended January 14, the lowest level in nearly four years, said the Department of Labor on Thursday. GBP "Right to the end, 2011 was an extremely tough year for UK consumers" ...

Even though the trade deficit unexpectedly widened in November, the US dollar is moving higher today. For the most part, US dollar is gaining as uncertainty prompts a certain degree of risk aversion. With rumors of an imminent French downgrade, a disappointing Italian debt auction, and worries about banks, it is little surprise that safe havens like the US dollar are in demand. Indeed, there is a great deal of uncertainty right now. Italy’s debt auction was quite disappointing earlier today. Additionally, there are rumors that France is on the verge of a debt downgrade, and that could really upset markets. Even the signs of resilience in the eurozone economy can’t overcome the worries. Also pressing down on investors and Forex traders is the disappointing earnings report from JPMorgan. ...

A report released from the World Gold Council showed central banks more than doubled their gold purchases in Q3. With increasing expectations of QE3 coming from the Fed this quantity of gold buying may continue to support the long term uptrend in gold prices. Economic News USD - Why the EUR/USD is Trading Above 1.30 and Not 1.10 The European debt crisis continues to drag on and has now fully engulfed both Spain and Italy. Spanish 10-year bonds are quickly approaching a dangerous 7% yield while the Italian 10-year continues to trade above this threshold. It is at this level that the nations of Greece, Portugal, and Ireland sought a financial bailout from the EU/IMF. So how is it that the EUR/USD continues to trade above the 1.30 level and not closer to 1.10? The EUR continues to be ...